Your credit situation affects the options available when you finance a used car, but it does not automatically close the door. Here is a plain-language guide to how financing works and how to prepare.

What lenders look at

Lenders typically consider your credit history, income, existing debts and the vehicle you want to buy. The amount you put down and the length of the loan can also matter. Approval, rates and terms depend on lender conditions.

Strong or good credit

With a solid credit history you generally have more choice in terms and rates. Comparing the total cost of the loan, not just the monthly payment, helps you pick the right option.

Fair or average credit

If your credit is somewhere in the middle, a larger down payment or a vehicle at a more modest price can make the numbers easier to work with. Checking your credit report for errors before you apply is worthwhile.

Rebuilding credit

If you are rebuilding after missed payments or other setbacks, an auto loan paid on time can help your credit over time. Be realistic about a payment that fits your monthly budget.

New to credit

If you have little or no credit history, lenders may look more closely at your income and employment. Keep documents like proof of income handy when you apply.

Tips before you apply

Know your budget, check your credit report, decide how much you can put down, and think about whether you have a vehicle to trade in. Use our payment calculator to estimate weekly, bi-weekly and monthly payments.

Frequently asked questions

Does AA Canada Inc offer financing for all credit situations?

Yes, we offer financing for all credit situations. Approval, rates and terms depend on credit approval and lender conditions. Learn more on our used car financing page.

How long does pre-approval take?

Our online pre-approval takes about 2 minutes. Start your application.

Shop with AA Canada Inc in North York

Browse our live inventory, get pre-approved in about 2 minutes, or book a test drive at 5709 Steeles Ave W, North York. You can also see our used luxury cars and used SUVs.